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Jennifer Samano
on Nov 22, 2024

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Rent on an office building would be considered a fixed cost, while sales commissions would be considered a variable cost.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent or salaries.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

  • Appreciate the significance of understanding fixed and variable costs in pricing.
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Lernik ShahbazianNov 28, 2024
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